Re: Arbitration ?

Posted by Don (64.203.129.94) on February 04, 2004 at 02:04:10:

In Reply to: Re: Arbitration ? posted by Leafs Fan on February 04, 2004 at 01:23:54:

A mortgage loan and a car loan are secured by property. You don’t make the payment, then yes they can take the underlying property.

However binding arbitration on unsecured credit cards is signing away your right to a court trial. You can’t give up your fundamental rights. You can’t sell yourself into slavery even if you wanted to. So no, you can’t sign away certain things in a contract even if both parties initially agreed to it. It is not legally enforceable if one of the parties objects.

Why sign the contract in the first place? Who has ever applied for a loan with any thoughts that they may default? (How many people have pre-nuptial agreements?) It’s only after facing hard times that people look up the contract and find out what rights they initially signed away. Then they can object to those terms.

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